AirAsia Customer Relationship Management

breezeAsia Customer Relationship ManagementIn todays world economy, information technology (IT) has driven fundamental changes in the nature and also the application of technologies in a business. The use of IT in its value chain provides the high society a very strong strategically and tactical bills. If these tool are properly applied and used could bring great advantages in promoting and strengthening the competitive advantages.In order to gain more mart treat and sustain its competitive advantages to be very low cost carrier in these days racy demanding environment, argumentation Asia tries to develop new ways of reap the customers, suppliers loyal. Focus on supplier and alliances and the customer leave alone drive positive values to expression Asia gage achieve. Customer relationship management application will be one of the areas of strategic implementation that company rouse focus to achieve high values to both Shareholders and Customers.Customer Relationship Manag ement (CRM)In order to long term, customer relationship should be fostered for company to maintain competitive advantage and profitability. When planning and implementing CRM application, management is recommended the following approachesCustomer division-mileage- based segmentation is inadequate, rather should focused on value-based and call for-based approaches fundament be guide investment decision and drive greater insight into needs of high-value customer.CRM initiative development-to different from the other competitors approach e.g. installing kiosks for the fast check in. Air Asia should implement CRM program in favour of investing in initiatives with a high return, which respond to the needs and desires of their own customers.Organizational design and management-Air Asia needs to train the employees empowerment them with a complete view of the customer and clearly fluent the employees role in the CRM strategy. good and classy CRM information placement should include th e key functions that areTravelling PlanningSite personalization for on line customer to create travel plan, bundled work information, flights notification systems, and gate information displays etc.Reservation and TicketingITA search engines, roving agent check-in, kiosks, internet check-in, and phone check in systems etc.Frequently eyeshade ProgramMembership based or point based rewarding scheme offering to the applicable customer.Campaign ManagementEmail campaigns and promotion system are used for marketing.Customer CareWeb based self services such as e-ticket booking and reservation, online baggage tracing. RFID baggage tags, internet lounge, and in piece of cake internet services.Business intelligenceDynamic update and multidimensional reports that helps management to do analytics in various areas, such as customer profile.To relieve the investment and implementation scope of the CRM program, Air Asia is recommended to look into the ROI and financial impact to the shareholde r value driven by each of the CRM initiatives.By taking the move to implement a truly consumer-centric approach to relationship management, Air Asia will be in check position to attain , develop, and hold on to high value of the clientsCompany wants to be the lowest curtly-haul airline in every market it goes, that why they are using some strategies such as hunt cost structure, different ways of promotion, keeping safety, satisfying guests and developing human resource very strongly these days. Air Asia always tries to keep their operations as artless as they can.SWOT AnalysisTo figure out the internal factors such as Strengths and Weakness, and external Opportunities and Threats to business objective, a SWOT analysis of Air Asia can be conductedStrengthsLow cost operationFewer management level, effective, focused and aggressive managementSimple proven business model that consistently distribute that the lower faresPenetrate and motivate to the potential marketsAnd multi skille d staff means efficient and incentive workforceSingle type of Air buses play down the maintenance cost and easy for pilot dispatchStreamline Operation making sure that the processes are as simple as possible, that customer can approach and use it with no difficultyLean Distribution System offering a wide and innovative rang of distribution channels to make a booking and take a step toward a travelling easyPoint to point network applying the point to point network keeps operation simple and low cost, that it connect the booking offices with call centresPartnering with the worlds most renowned maintenance provider company and complying with the airline operation in the world.Implementing the regions fastest turnaround at 25 minutes only, assuring lower cost and higher productivityWeaknessesDue to lower costs the services possessions are limited, so someone can think that Air Asia cannot serve as well as they advertiseDuring irregular situations the company could not handle them well with limited number of personalspolitical science interference and regulation on airport deals and passenger compensationNon central location for secondary airportsIts low cost strategy makes the brand critical for market position and development is always a challenge for Air Asias managementOne of the weak point is that the company trust heavily on outsourcing, it shows the Air Asia depends on other for some of their tasks and seems not good for companys repute in the customers mindNew entrance to provide the price sensitive servicesProviding guests with the pick of modify services without compromising on quality and services.OpportunitiesLong haul flights an experiment to get underdeveloped market share, which is better for the companys growth.The Air Asia can place from traditional Low Cost Carrier model by adding customer services or operating as a full services airline with low fare for the haul flights.Ongoing industry consideration has opened up projection for new routes an d airports deals, by making such kind of deals the company expand his businessHigh inflation rate and also fuel prices will pinch out unprofitable competitorsThreatsKeeping in view the flow economic situations the full services airline cut their cost to compete.Other companies like Virgin etc may think towards Low Cost Carriers (LCCs)In the flood tide time the high rates of fuel decrease the yield of the company is a big panic for themAccident, terrorist attack and disaster affect customer confidence.For mannequin on 28 July 2010 a plane crash in Pakistan and almost one month later on 24 of august 2010 there is a another plane crash in China, these kind of accident creates a doubt in the mind of customers. Due to their (Air Asia) low cost model the flock may think about that there is risk involve like services and safe journey. I think this is a major threat in these days that Air Asia can face.Aviation regulation and government indemnity, Air Asias ongoing business in long ha ul flights have always threat for the changing policies of the those countries and day to day changes in the regulations of the international airport authoritiesIncrease in operation cost in producing value added services, as Air Asia X using value added services by long haul flights so it results in increase their operation and value added cost.As Air Asia policy from the January 2002, company belief online seat reservation and also online flight schedule but a threat is always there that the system disorder can arise big problem for Air Asias online systemEconomical factor of Air AsiaAccording to the profit and loss account of company it was good in 2009, weather it receive loss in 2008 due to fuel hedging and the crisis situation in Bangkok. The company bear a heavy loss upon their short and long contracts when fuel price shot through to the roof before collapsing around the end of year. On November 2008 the company abolish fuel surcharges. It is the first air line in the world t o abolish fuel surcharge. As other air lines are downsize with decreasing in travel, because of global economic circumstances. In 2009 and in 2010 Air Asia expands its operations. The companies target to get around one Million customers in 2008, adding new plans and also introducing new destinations like India etc. At the end of 2009 and come in of 2010 Air Asia targets get 5.1 million in 2009 that is 4.2 million up that was in 2008. The new plans were operate usefully towards new destinations like India, China etc. new ActivitiesThe Air Asia invited the customer to come and take part in photography competition in a sense of making journey Happy with Them(AIR ASIA), the superior of this competition will be awarded a ticket to Bangkok with accommodation and other offers such like that to get market penetration.From 2009 the company starts scholarship for students link to pilot courses this is another try to get more market penetration in term of Air Asias sales and make the custom er interested in their new routes and keep the existing and as well as new customers.These Air Asia using Social security checks for buying ticket on particular(a) prices.Red Megastore. They start red megastore for online services for the purpose of make more ease for the new and little educated customers to buy Air Asias offered facilities. As we hump the target customer of Air Asia is less educated, Middle class and small business mens, so this plan works very fruitful for the company.Customer ecstasy of Air AsiaThe customer satisfaction on company depends on four variables that are Safety, Service Quality, Price and PromotionSafetyThe safety factor is link to the Engine and other parts operate during flightTake a good care of the hand caries and make sure that there is better place for them without any disturbanceThe company have much focus on the insurance of passengers while they travelService QualityGood courtesy of attendance during flightThe flight attendants are very s killed , knowledgeable and charmingThe Attendants must offer their services with keeping in mind of helpPriceEquality of ticket priceOffer the low comparative pricePromotionAir Asia was very care while lunching promotions they should be Interesting, After a reasonable time and also good frequency of lunching promotions